Critical Resources (ASX: CRR) advances Lammerlaw as Devils Creek delivers first pass gold confirmation

Critical Resources Limited Managing Director Tim Wither commented on recent exploration results from the Lammerlaw Gold Project in Central Otago, New Zealand, providing context on how first pass rock chip, soil geochemistry and water sampling results are shaping the next phase of work across the Company’s New Zealand portfolio.

The discussion focused on surface sampling results from Devils Creek, including confirmation of gold mineralisation at historic workings and the definition of a new soil anomaly at a separate structural target.

It also addressed the role of soil arsenic and catchment water geochemistry as early stage reconnaissance tools within a staged exploration framework, and how the Company is prioritising work across Devils Creek, Target Two and other regional prospects as it advances toward further target definition.

What has actually changed at Devils Creek after the rock chip and soil results, and what remains unproven on scale, continuity and economic relevance?

We have seen increased technical confidence at Devils Creek based on first pass field results.

Rock chip sampling has confirmed gold mineralisation at surface around the historic adit area, including a peak result of 5.42 grams per tonne gold, supported by additional float samples returning 1.63 grams per tonne, 1.45 grams per tonne and 0.48 grams per tonne along the interpreted trend.

Soil geochemistry has also defined a coherent arsenic anomaly aligned with the same structural setting and historic workings, with a peak value of 757 ppm arsenic, indicating a mineralised system that remains open along strike.

What remains untested is the scale and continuity of mineralisation, as no drilling has been completed and the sampling is selective in nature.

The results do not define true widths, grade continuity or economic parameters, and at this stage they are being used to refine and prioritise follow up exploration work within an early stage reconnaissance framework.

How is Devils Creek being sequenced against Target Two and the broader portfolio, and what must be demonstrated before drill testing is justified?

We are sequencing Devils Creek ahead of Target Two within a structured exploration approach across Lammerlaw.

Devils Creek is prioritised because it already has confirmed surface gold mineralisation from rock chip sampling, coherent arsenic soil anomalism and a clear association with historic workings along an interpreted structural trend.

Target Two remains at an earlier stage and is defined primarily through first pass soil geochemistry and geophysical interpretation, and therefore requires additional validation before it can be advanced on the same basis.

Before drill testing is considered, we need to establish stronger coherence across surface datasets through infill soil sampling, additional rock chip sampling and detailed structural mapping.

We also need to better define the geological source of the anomalies.

These datasets then need to be integrated with LiDAR interpretation, geophysics and historical exploration information to allow disciplined ranking of targets across the broader portfolio prior to any drilling decision.

How should investors treat the reliability and decision utility of the soil arsenic and catchment water geochemistry in practice, and what level of further validation is required before these datasets are used to prioritise meaningful capital allocation?

We treat soil arsenic and catchment water geochemistry as early stage reconnaissance tools rather than standalone decision inputs.

The soil pXRF dataset, which has been QAQC corrected, is appropriate for defining anomalies and guiding target generation, but it does not define mineralised widths, grade continuity or any resource level outcomes.

It is useful for indicating where a system may be focused, but it is not sufficient on its own to support capital intensive decisions.

The water geochemistry program is an orientation trial based on 15 samples and is intended only to test whether a dissolved trace element response can be detected at catchment scale.

It is therefore supportive in nature and preliminary in interpretation.

Before either dataset is used to materially influence capital allocation, further work is required including increased sampling density, repeatability testing, appropriate field QAQC for water sampling, and integration with geological mapping, rock chip results, structural interpretation, LiDAR and geophysical datasets, as well as confirmation of the underlying bedrock source of the anomalies.

With multiple targets emerging across a large land position, how is capital being prioritised across the portfolio over the next phase of work, and what programs are being deliberately slowed or deferred to maintain discipline?

We are prioritising capital across Lammerlaw and the broader New Zealand portfolio by focusing near term expenditure on areas where surface datasets already show coherent mineralised signals.

At Lammerlaw, Devils Creek is the primary focus due to confirmed rock chip gold results, coherent arsenic soil anomalism and its association with historic workings along a consistent interpreted structure.

This supports continued but controlled follow up work including mapping, infill soil sampling and additional rock chip sampling before any escalation in expenditure.

Target Two is being advanced in parallel but at a lower level of intensity, with work focused on validation and ground truthing rather than rapid advancement.

Across the broader portfolio, early stage regional reconnaissance and expansionary sampling programs are being paced to ensure effort remains concentrated on tightening and ranking existing targets, rather than dispersing capital across unvalidated prospects.

Staged progression toward ranked drill ready targets

Critical Resources are continuing to progress Lammerlaw through a staged and disciplined exploration approach focused on converting surface geochemical signals into ranked targets suitable for potential drill testing.

With Devils Creek now the priority area following confirmation of gold mineralisation at surface and supporting soil geochemistry, the immediate focus remains on improving structural understanding and testing continuity through additional mapping and sampling.

Target Two and other regional prospects remain in evaluation phase, with work designed to refine and rank targets as datasets mature.

Across the broader New Zealand portfolio, we will continue integrating geochemical, geophysical and historical datasets to support systematic target generation and ensure capital is directed toward the most advanced and coherent opportunities.

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